Short Term Loans

If you’re amid a cash flow problem, and you need money fast, a short-term loan can be the answer. With minimal effort, you can be out of your financial hole and back up and financially functioning. The short-term nature means the problem isn’t hanging over you for years to come either. However, we understand that the world of short term loans, and payday loans, can seem bewildering. This guide will answer all of your questions, ensuring you feel confident that a short-term loan is the solution you’re looking for.

What is a Short-term Loan?

A ‘short term loan’ is simply one with short repayment periods. This may be as short as payday (a payday loan), or it may be 3-12 months. They are loans designed to get you out of a short term financial emergency quickly. Short-term loans are usually for £1000 or less.

Short term loans differ significantly from those offered by banks. A bank loan will typically be spread over a much longer repayment period, and require much more complicated application processes.

Can you get a Short-term loan with bad Credit?

Yes you can! Unlike a bank loan, short term loans don’t place as much weight on your credit rating. This is because the loan amount is typically smaller than you would be asking a bank for, the repayment terms shorter, and you are dealing with a specialist short term loan company.

Short-term loan Eligibility Criteria

Instead of penalising you for bad or no credit, short term loans are offered based on factors such as employment. Our eligibility criteria for short-term loans is:

Being over 18

Being reliably employed

Being a resident in the UK

Having a UK bank account wages are paid into

Having an email address

Being employed and earning over £500 per month

For many individuals, it is their bad credit rating which puts them off applying for a loan to get them out of their financial fix. However, often this fear is unfounded. Whilst it is the loan company’s responsibility to check that you will be able to repay the loan, the information used for this is based more on the here-and-now, and your commitment. Information in your application, as well as a credit check, will determine your eligibility for the loan.

This makes short term loans a valuable option compared to conventional lenders who don’t typically arrange loans for those with low, bad, or no credit. Whilst you may be able to improve your credit rating over time, this isn’t possible as quickly as you may need. Even if you have been denied a bank loan, don’t despair, you may well be eligible for a short-term loan.

Benefits of Applying for a Short-Term Loan Online

The benefits of a short-term loan include:

Speed: The single biggest benefit is rapid access to money to help you out in an emergency. You won’t be bogged down in a complicated application process. For example, applicants through MoneyPod can expect a decision to be made on the same day of application. Furthermore, once you are approved, the loan payment is completed very quickly, typically on the day of application.

No Collateral Needed: Traditional loans will use something you have, such as your property, as collateral. That item is then at risk should you be unable to repay the loan. Short term loans don’t work in the same way. Whilst of course you are still liable for paying off the loan, you don’t stand to lose your home in repayment.

Loan with Poor Credit: You can apply for a short-term loan even if you have a bad credit rating, or no rating at all. We simply need to check you’ve got a regular income, versus what you’re paying out in terms of any existing loans. Even if you have a poor credit rating you are likely to be eligible for a short-term loan.

Short Term Commitment: With a short term-loan it should all be over and dealt with quickly. Once you’ve repaid and you’re back on track financially, you’re no longer committed.

Flexibility: Short term loans are inherently more flexible than longer term options. You can find a loan which suits your current situation, with the best short-term repayment options for you.

Costs and Interest: Whilst short term loans will have higher APR, because the loan is for a much shorter period, this can work out as less over time compared to a lower APR over a longer repayment period. If you’re comparing the two, you get a more accurate picture of costs if you look at the total amount repayable.

Should I take out a Short-term Loan?

Short term loans work best when you have a fixed financial need, of a relatively low amount, with a definite means to pay. This is why they are often interchangeable with payday loans. They are, for example, ideal if you have three weeks until payday and the washing machine has broken.

You shouldn’t, however, use a short-term loan as a means to paying off another loan.

What is the Difference Between a Short-term loan and a Payday Loan?

A payday loan is a form of short term loan. Payday loans are designed to be paid back very quickly, as soon as your next pay cheque comes in, typically within a few weeks.

A short-term loan, whilst incorporating payday loans, may have repayment terms that are still short term, but longer than your next pay day. They may require repayment within a month, three months, or even up to a year.

What are the Normal Payment Periods for a Short-term Loan?

The majority of short term loans are payday loans and will be paid off on the first payday following the loan payment. These loans are very short term and designed to bridge a gap in cash flow.

Other short term loans may have slightly different repayment periods. They may be for three months, six months, or anything up to a year.

* If your loan is approved, funds may be cleared and in your account in around 10 minutes.
This is subject to lender checks and clearing times. Our service software will find a match
offering the lowest APR rate possible within our network based on availability.

Lowest APR - Our software system uses sophisticated algorithms to search for and match your
application with a lender offering the lowest APR rate possible based on your current
circumstances. APR rates depend on specific factors and risk and range from 45.3% to
1575%.

Loan Amounts - Your actual loan offer may be less than what you applied for, this is because
every loan application is considered and dependent on affordability. Lenders will consider
loan period, income and outgoings so a decision might be to decline the requested loan but
may accept and present a lower amount offer. Applications may be accepted on a different
borrowing period; this is due to the circumstances of the borrower and the repayments of
the loan based on available income.

Consumer Advisory: Moneypod is a loan matching service. This site will submit the information
you provide to a direct lender. Upon loan approval, a direct lender may require further
information from you which will be collected after we transfer you to their website or they
may contact you via phone or email.

The operator of this site is not a direct lender. Loan terms, conditions and policies vary by
lender and applicant qualifications. Late or missed loan payments may be subject to
increased fees and interest rates. Not all lending partners offer up to £3,500 loans, and
not all applicants will be approved for their requested loan amounts. Loan repayment periods
vary by lender also. Lenders may use collection services for non-payment of loans.

Not all borrowers will qualify for a loan, the operator of this website does not engage in
any direct consumer lending, we simply provide a FREE loan matching service to the
public.

Representative: 278.2% APR

Representative Example: Amount of credit: £900 for 11 months at £154.90 per month. Total
repayment of £1,703.91. Interest: £803.91. Interest rate: 150% pa (fixed). 278.2% APR
Representative. Rates from 45.3% APR to 1575% APR - quotes and APR will be based on your
personal circumstances. Nouveau Finance Limited is authorised and regulated by the Financial
Conduct Authority and is entered on the Financial Services Register under reference number:
727348 We are a credit broker and not a lender and offer credit facilities from a panel of
lenders.

*Fund transfer times may vary based on the matched UK money lender, time of day applied and
your bank.